Manning happy CSG projects on hold

Protesters at the entrance to the Dart Energy drill site at Fullerton Cove, near Newcastle.

ABC News: Dan Cox

A decision by a large scale coal seam gas company to suspend its operations in New South Wales has been welcomed by a Manning Environmental Group.

Dart Energy has announced it is putting its New South Wales projects on hold and cutting 70 percent of its workforce.

Chris Sheed with the Manning Clean Water Action Group says it's very encouraging news, especially for residents of Fullerton Cove.

He says they're also focussed on seeing the departure of AGL from the Gloucester Valley.

"I would imagine if the shareholders of AGL have a close look at the situation they may well be encouraging the directors to pull out.

"AGL have had approval for Stage 1 of their project, it may be difficult for them to meet particularly the federal requirements of the approval for Stage 1 and I think they may have difficulty meeting future requirements for Stage 2 and Stage 3," he said.

He says residents there had expected Dart to recommence drilling.

Mr Sheed says the announcement is not good news for Scotland and England where Dart Energy is now intending to focus its CSG projects.